There was a nice review Monday in the Las Vegas Business Press that, unfortunately, had one significant error. (I don’t mean something I disagree with, I mean a factual mistake).

I wrote the reviewer thanking him for “the kind words about Bailout Nation” — but gently noted this small correction in the review regarding “Who is to blame.”

Since I never heard back from him, I feel compelled to correct the record.

The reviewer wrote: “Ritholtz finds two main villains behind the current crisis: former Federal Reserve Chairman Alan Greenspan and former President George W. Bush.”

I responded:

“While I was wholly unimpressed with President Bush during the crisis, I find many more people more deserving of blame than him. On page 232, I list two dozen players who are primarily at fault — and while Greenspan is at the top of the list, George W. Bush comes in somewhere around the middle (depending how you count ~10 or 15).

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

8 Responses to “Correcting a Review of Bailout Nation”

I think you missed Bob Rubin and Larry Summers who ran Treasury and pushed for the repeal of Glass-Steagal and where instrumental in the passing of the Commodities Futures Modernization Act and making Brooksley Born look like an idiot for suggesting that CDS should be regulated and traded on exchanges.

IMO, Bob Rubin was at the epicenter of the corruption and crony capitalism that directly lead to the financial crisis. Note that he made his way through the revolving door to become chairman of Citigroup after enabling Sandy Weill to merge Travelers with Citi.

Of course no list of the villains is complete with Hank Paulson way at the top.

And Bill Clinton should get a fair share of epithets for signing all these bills into law.

I don’t see how one could come to a conclusion that two main villains were found by reading any part of Bailout Nation. In fact, I think the response here (that multiple people/groups were responsible) is stressed more than once throughout the book if I recall correctly. Certainly an odd take-away that was rightly corrected. On the bright side, perhaps some Anti-Bush folks (of which there are a few) might be prompted to buy the book now.

The list you posted, I wouldn’t except as as explanation for an industrial accident investigation. Its too diffused.

The list is identifies contributing factors not the root cause. The reviewer rightly wanted names to identify to his readers. He (we) want culpable persons or single time events. Not “it was the big wall street banks”.

I have read three prominent books this summer, Bailout Nation, Outliers from Malcolm Gladwell, and The Ivy Portfolio by Meb Faber.
The real thumper is my rural library will bring a book in only if you ask for it and they deem it worthy.
I have another twenty years to slowly accumulate good readings in the business/financial section.

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About Barry Ritholtz

Ritholtz has been observing capital markets with a critical eye for 20 years. With a background in math & sciences and a law school degree, he is not your typical Wall St. persona. He left Law for Finance, working as a trader, researcher and strategist before graduating to asset managementRead More...

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